The share price of Tata Power rallied over 3 percent to hit a fresh 52-week high of Rs 84.60 after the company acquired a 51 percent stake each in TP Southern Odisha Distribution Limited (TPSODL) and TP Western Odisha Distribution Limited (TPWODL).

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The company acquired the stake in TPSODL for a consideration of Rs 127.50 crore and TPWODL for Rs 255 crore. GRIDCO Limited (GRIDCO) will hold the remaining 49 percent equity stake in both companies, Tata Power said in a regulatory filing.

TPWODL shall now be responsible for the distribution and retail supply of electricity in five circles of WESCO covering 2 million consumers with annual input energy of 7520 MUs in areas of Rourkela, Burla, Bhawanipatna, Bolangir, Bargargh.

Further, TPSODL will be responsible for the distribution covering 2.3 million consumers with an average energy input of 3470 MUs and retail supply of electricity in six circles of SOUTHCO in areas of Ganjam City, Berhampur, Aksa, Bhanjannagar, Jeypore and Rayagada, the company added.

“With this takeover, the company’s distribution circles will expand to the western (TPWODL) and southern part (TPSODL) of Odisha with geographical spread of more than 47,000 sq km each. It will manage a network of more than 100,000 CKT. KMs. each for a license period of 25 years,” the company statement said.

With the inclusion of two additional distribution utilities, Tata Power expands its consumer base to 9.5 million from the present base of 5.2 million across Mumbai, New Delhi, Central part of Odisha and Ajmer.

At 10:55 pm, the shares of Tata Power Company were trading 1.89 percent higher at Rs 83.40 apiece on the BSE as compared to a 0.90 percent gain in the benchmark Sensex.

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